After losing an adjudication case, the Offshore Development Company (ODC) has been mum on the abandoned Omahenene SME Business Park in the Omusati Region.
Namibian Sun has been informed that the project’s main contractor, Katrina Enterprises, registered a dispute over unfair project management by the ODC, who appointed the project architect who in turn allegedly caused conflict at the construction site that led to the contractor abandoning the site.
After a year of no activity at the site, the ODC appointed the Namibian Council for Architects and Quantity Surveyors (NCAQS) to adjudicate in the matter, but it was not happy with the adjudicator’s decision made in December last year.
Katrina Enterprises is owned by Katrina Elifas, the daughter of Ondonga King Immanuel Kauluma Elifas. It formed a joint venture with Chinese construction company Zhen Jiang and was awarded a N$19 million tender to build the Omahenene Business Park at the Omahenene border post between Namibia and Angola.
The contract was awarded in 2013, and the project was expected to be completed by May 2015. When the contractor abandoned the construction site toward the end of 2014, only 65% of the work had been completed.
As per their contractual agreement, the ODC had to appoint an independent body to see if they could resolve the matter, but the NCAQS found that ODC failed to manage the project properly.
It has not been established what the adjudicator ordered ODC to do.
Elifas said she was satisfied with the adjudicator’s decision and was waiting for the ODC to direct them on the way forward as stipulated by the adjudicator.
“Since the issue was resolved by the adjudicator early this year we have not heard from ODC yet. They took the matter up for adjudication themselves, but now they are not happy with the outcome. We are happy with the outcome and are only waiting for them to tell us what the way forward is,” Elifas said.
Elifas would not provide more information on the matter, saying more details could be obtained from ODC.
It is alleged that the ODC believed it was properly covered with respect to potential loss of income on the project. Measures such as penalties, retention fees and a performance guarantee by a commercial bank are in place, but the adjudicator ruled in favour of the contractor.
It is not known what steps ODC is planning to take, as efforts to get commentary from the acting CEO failed.
Last year ODC’s former CEO, Phillip Namundjebo, confirmed that the project was in dispute and that they had appointed the NCAQS to see if they could resolve the matter. He said if that failed, the ODC would take Katrina Enterprises and Zhen Jiang Construction to court and claim damages.
“We are exploring all the options in order to find an amicable solution, which includes the implementation of the provisions of the signed agreement in case of non-performance by the contractor.
“In addition ODC has the bank guarantee in case the contractor fails to execute the contract. We have activated the penalties against these contractors.
“It is in the interest of the contractors to complete the project on time without compromising the quality of workmanship of the project if the contractor wishes to protect itself against the aforesaid punitive measures,” Namundjebo said.
ILENI NANDJATO